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“Satisfaction is a rating… Loyalty is a brand.”
Quoted Shep Hyken, a noted Customer Service public speaker and Chief Amazement Officer (CAO) at Shepard Presentations, emphasizes the significance of a loyal customer base in elevating enterprises to world-class status. He asserts that well-crafted loyalty programs are pivotal, shifting causal shoppers into loyalty customers; playing a crucial role in this transformation.
According to a McKinsey Report, consumers in MENA expressed a strong intent to do more shopping online, with 34 percent of consumers in Egypt, 33 percent in the UAE, and 30 percent in KSA looking to increase their online shopping habits in 2024.
It therefore comes as a no-brainer that the Middle Eastern market’s upgraded promotional schemes like visual merchandising, advertising, and loyalty programs are an inspiration to the global retail industry to catapult customers that are driven by innovative loyalty programs. As we embark on the evolution of loyalty programs in the UAE and other Middle Eastern countries, let’s begin by understanding what makes retail loyalty so worthy. Before we move ahead, take a look at the figures below drawn from the iVend Retail research focusing on why shoppers vouch for a loyalty program in the Middle East retail market.
As we dive deeper into the retail segment of the Middle East, let’s take a cue from some of the lauded loyalty programs (powered by awesome loyalty tech) in the UAE that have been there and continue to churn profitable wallets, rooted by a loyal customer base.
A premium rewards program by Al Tayer Group, Amber has partnered with more than 80 brands, including automotive brands like Ferrari and Jagua,r thereby bolstering its premium presence across the world. Amber offers memberships categorised as Classic, Select and Plus, offering a wider gamut of rewards and privileges. However, Amber‘s major evolution began in 2016 with the launch of the new Amber App in the UAE, Qatar, Kuwait, Bahrain, and Saudi Arabia. A highly rated App, it is available in English and Arabic languages. Amber’s digital evolution has not only impacted its current customer base, which rose 13x than before, but the conversion rate too, which has scaled up to 2.5 times.
Translated as ‘thank you’ in Arabic, Shukran Rewards is owned by the renowned Landmark Group in Dubai offering almost 57 global brands. This award-winning loyalty program in the UAE boasts of over 10 million members spread out over 9 countries owing to its decade-long presence in the market. While the company started its innings by offering a physical card, but in 2016, owing to the digital evolution, the company announced its virtual card which could be downloaded from the Shukran App available on both iOS and Android.
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Offering a range of over 75 brands currently, Club Apparel started with a cardless, App-based loyalty program and is helmed by the Apparel Group across the entire GCC (Gulf Cooperation Council) region. It was also the first entity to offer a digital retail experience in the retail loyalty program segment. The group has enjoyed a massive customer base, and to further strengthen their subscribers, it was in 2016 when the Cardless maverick introduced a three-tier membership program offering more privileges, rewards, and access to VIP events at every tier to their subscribers. This move was aimed at offering exceptional services to its shoppers.
World’s second largest retailer Carrefour partnered with Majid Al Futtaim Group to launch this loyalty program in UAE. While all the other loyalty programs focus on Lifestyle and Fashion brands, Carrefour is the only loyalty program catering to the quintessential commodity – groceries. A lifetime free card, it is available at 17 Carrefour Hypermarkets and 19 Carrefour Supermarket in the region. With the foray of digitization in the retail segment, Al Futtaim Group launched a loyalty program, namely SHARE in 2019, under which Carrefour points can also be clubbed now. This move was aimed at customer convenience by allowing shoppers the flexibility to earn and redeem points with other partners by downloading the SHARE App.
Spearheaded by the Majid Al-Futtaim Retail Group, this is the Group’s first centralized customer loyalty program offering lucrative rewards when shopping with the Group brands and partners across 17 malls in the GCC & Egypt regions. A recent entrant in the retail loyalty program bandwagon, SHARE Rewards is rated 4.5 on the Google Play Store and is a popular choice for shoppers in UAE. SHARE Rewards redemption is also applicable on other Al Futtaim brands including Carrefour, VOX Cinemas, Magic Planet, Ski Dubai, Little Explorers, iFly Dubai, Crate & Barrel, American Girl and Lego making it an irresistible deal for shoppers.
The above tabular representation signifies the surge in digital evolution in the Middle East Retail market around 2016. The ubiquity of retail loyalty Apps in the Middle East largely reflects how the digitalization wave has gripped the region. Indeed, the recent Pandemic times have exhibited a major shift in the shopping behaviour across the globe, with the Middle East not being an exception. This statement is further quantified by a consumer incentive study by Wirecard which highlights the fact that 70% of shoppers are accessing the App for a fuller control of their retail choices and experiences.
With the tipping scale pointing more towards the consumers now, App-based loyalty programs can be a game-changer. The recent move by Al Futtaim Group also stands as a testimony to a forthcoming evolution in the retail industry. Given the facts, figures and the current industry moves by many stalwarts; it can be said that…
… the evolution in retail has begun; the revolution is not far behind.
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The top 5 retail loyalty programs in UAE are Amber, Shukran Rewards, MyClub, Share Rewards and Club Apparal.
Let’s answer this with an example. The Blue Rewards program, one of the best programs in the Middle East and Asia, delivers an unparalleled experience for customers across, setting a benchmark for the region.
Powered by Capillary’s cutting-edge loyalty tech, AI-driven personalization and innovative loyalty management, the Blue Rewards program not only elevates customer experiences but also continually evolves, adding value and setting new standards in the loyalty landscape. Capillary’s robust tools empower brands to enhance customer relationships, demonstrating that personalized rewards and seamless engagement are key to long-term customer loyalty.
November 14, 2024 | 6 Min Read
The Middle Eastern market’s upgraded promotional schemes l